Hybrid vehicles, plug-in hybrid electric vehicles and battery electric vehicles they represented 18% of all new light vehicle sales in the first quarter of 2024, down from the 18.8% share of the fourth quarter of 2023. Sales of battery electric vehicles (BEVs) fell for the first time since the onset of Covid in 2020, the Energy Information Administration (EIA) said on Tuesday, citing estimates from Wards Intelligence.
This slight decline in EV market share was mainly driven by a decline in sales of BEVs, i.e. battery-electric cars without combustion engines, which decreased from 8.1% of the total light-duty vehicle (LDV) market in Q4 2023 to 7.0% in Q1 2024.
“This decline represents the first decline in BEV market share since the economic effects of the COVID-19 pandemic began in 2Q20,” the EIA said in an analysis today.
Of all U.S. BEV sales in the first quarter of 2024, eight out of 10 were luxury models, due in part to continued broad availability of luxury BEV options and favorable pricing within the segment by Tesla, Mercedes , Rivian, Cadillac, Audi and BMW. Only the rich buy electric cars, and maybe even leave them in the garage.
U.S. automakers have reported a slowdown in consumer adoption of electric vehicles since late last year.
Last month, Ford Motor Company said it is delaying the planned launch of some of its next-generation electric vehicles while expanding its hybrid vehicle offerings, in the latest sign of slowing adoption of electric vehicles of consumers.
“The additional time will allow the three-row EV consumer market to develop further and allow Ford to take advantage of emerging battery technology, with the goal of offering customers longer life and better value,” he said. Ford said in an April statement.
While the International Energy Agency (IEA) continues to take a very positive view of the global EV market, the automotive industry is concerned about slowing EV sales as subsidies are phased out in key markets and consumers not yet convinced of the accessibility and autonomy.
US EV sales are stalled and Tesla is suffering, while new car sales in Europe fell in March for the first time this year, dragged by a decline in EV registrations and the timing of the holidays of Easter.
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